Real money

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A “real money” investor is one who funds investments at their full value, and has no truck with leverage, margin lending or unfunded derivatives. Thus, sensible, safe, comparatively low-risk: these are the good guys of the investment management world: if they blow up, it is their own problem, and not someone else’s. Unless you count the pensioners whose money they are managing, of course.

Who are real money investors?

Folks who are long capital and want some inflation-defending return, but don’t want to bet the farm. Life insurance companies, pension funds, sovereign wealth funds: those types. Also index trackers.

Who are not real money investors?

Hedge funds; speculators: anyone who borrows money to invest. So, if you own a house with a mortgage, you. You crazy guy.

See also

• Hedge fund
• Investment manager